SARS has issued relevant information on turnover tax to help taxpayers understand the purpose of turnover tax for micro businesses, and how it works for the qualifying taxpayers.
The South African Revenue Service (SARS) published relevant information on turnover tax on Thursday, 21 October 2021, including what it is, who it is for, how to pay for it and how to register and submit your returns properly, amongst other information. SARS described turnover tax as a simplified system aimed at making it easier for micro businesses to meet their tax obligations.
The system serves to replace income tax, value added tax, provisional tax, capital gains tax and dividends tax for micro businesses with a qualifying annual turnover of R1 million or less. It also noted that turnover tax is for micro businesses, where taxpayers consisting of sole proprietors, partnerships, close corporations, companies and co-operatives, may qualify. The turnover tax is worked out by applying a tax rate to the taxable turnover of the micro business. Different turnovers will be taxed at different rates.
See the post below.
— SA Revenue Service (@sarstax) October 21, 2021